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- Intel to separate networking unit as new CEO Tan overhauls business</p>
<p>July 25, 2025 at 12:50 PM</p>
<p>(Reuters) -Intel is planning to separate its networking and communications unit into a stand-alone company and has begun the process of identifying investors, the chipmaker said on Friday, as new CEO Lip-Bu Tan looks to streamline its operations.</p>
<p>Tan's plan to rejuvenate the once-iconic chipmaker focuses on shedding non-core assets and reducing expenses by scaling back major investments and cutting workforce numbers.</p>
<p>Reuters reported in May that Intel was considering divesting its network and edge businesses, previously called NEX in its financial reports.</p>
<p>"Like Altera, we will remain an anchor investor enabling us to benefit from future upside as we position the business for future growth," the company said in an emailed statement.</p>
<p>In April, Intel agreed to sell a majority stake in its Altera programmable chip business to buyout firm Silver Lake at a valuation of about $8.75 billion, or nearly half of what it had paid for the business in 2015.</p>
<p>Tan has been given the challenge of revitalizing the chipmaker after years of missteps and high-capital manufacturing strategies led to growing losses, all while the company grapples with establishing a foothold in the burgeoning AI market.</p>
<p>Intel's shares were down 9% on Friday after the chipmaker warned of exiting chip manufacturing if it failed to secure a major customer. It also reported a surprise second-quarter adjusted loss and forecast a bigger-than-expected loss in the third quarter.</p>
<p>In the latest first quarter, Intel made NEX a part of its data center and PC group and does not report its results as a separate segment.</p>
<p>The unit, which makes chips for telecom equipment, generated revenue of $5.8 billion in 2024, securities filings show. That constituted about 11% of the company's total sales.</p>
<p>(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Anil D'Silva)</p>
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